Credit Rating: Coronavirus

Treasury written question – answered on 11th May 2020.

Alert me about debates like this

Photo of Rachael Maskell Rachael Maskell Shadow Minister (Digital, Culture, Media and Sport)

To ask the Chancellor of the Exchequer, what assessment he has made of the effect of covid-19 on personal credit ratings.

Photo of John Glen John Glen Minister of State (Treasury) (City), The Economic Secretary to the Treasury

On 14 April, the FCA published guidance that sets out what it expects firms to do for customers who are facing payment difficulties due to the exceptional circumstances arising from COVID-19. This includes granting the customer a payment deferral for at least 3 months.

In relation to personal credit ratings, the guidance sets out that lenders should not report a worsening arrears status on the customer’s credit file during the payment deferral period. It also states that where customers have been unable to agree a payment deferral because of the lender’s operational difficulties and therefore miss a payment, or where they have entered into a similar temporary arrangement with the lender due to COVID-19 which results in a worsening arrears status, the FCA expects firms to work with the customer and credit reference agencies to ensure that any necessary rectifications are made to credit files.

The Government continues to work closely with the FCA and industry on this matter and stand ready to protect consumers wherever it is necessary.

Does this answer the above question?

Yes1 person thinks so

No0 people think not

Would you like to ask a question like this yourself? Use our Freedom of Information site.